Taylor Morrison Home Corporation · NYSE:TMHC
Taylor Morrison Home — Q1 2025 Earnings Presentation
22 slides from Taylor Morrison Home's earnings presentation, Apr 23, 2025
Slide 1: Investor Presentation First Quarter 2025
Investor Presentation First Quarter 2025
Slide 2: At a glance as of 1Q 2025
At a glance as of 1Q 2025 86,266 24.8% 3.3 total homebuilding lots (59% controlled) adjusted home closings gross margin monthly sales pace 6.5 $1.8 billion 15.9% years of total lot supply (2.7 years owned) home closings revenue return on equity 344 $600,000 $1.3 billion active selling communities av
Slide 3: First quarter 2025 key metrics
First quarter 2025 key metrics Q1 2025 Q1 2024 Year-Over-Year Change Total Revenue (in thousands) $1,896,019 $1,699,752 12% Home Closings Revenue, Net (in thousands) $1,830,068 $1,636,255 12% Home Closings 3,048 2,731 12% Home Closings Gross Margin 24.0% 24.0% 0 bps Adjusted Home Closings Gross Marg
Slide 4: A transformative journey: Milestones
A transformative journey 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Acquired Acquired Increased Became a Entered the Acquired Debuted on Launched Celebrated Entered Named JEH Homes Acadia public float to fully-floated Build-to-Rent William the Fortune Build-to-Rent 100,000 Indianapolis A
Slide 5: Transformed financial strength
Transformed financial strength Scale Efficiencies Cash generation Shareholder returns 15% 19% $7.9 $709 $631 $6.1 12% 8% 8% $3.9 9% $298 2016-18 2019-21 2022-24 2016-18 2019-21 2022-24 2016-18 2019-21 2022-24 2016-18 2019-21 2022-24 Total Revenue ($B) Pre-tax Income Margin* Operating Cash Flow ($M)
Slide 6: Long-term targets reflect structural improvements to our expected earnings potential
Long-term targets reflect structural improvements to our expected earnings potential Annualized Monthly Sales Pace Home Closings Gross Margin Return on Equity1 Low-Three High-Teen Range 24.4% Low-to-Mid Range 3.0 20% Range 15.8% 18.8% 2.3 10.3% 2013-19 2024 Target 2013-19 2024 Target 2013-19 2024 Ta
Slide 7: Guidance metrics
Guidance metrics Second Quarter 2025 Full Year 2025 Ending active community count Around 345 At least 355 Home closings Approximately 3,200 13,000 to 13,500 Average closing price Around $585,000 $590,000 to $600,000 GAAP home closings gross margin Approximately 23% Approximately 23% SG&A % of home c
Slide 8: Our buyers tend to be well-qualified with financial flexibility
Our buyers tend to be well-qualified with financial flexibility Taylor Morrison Home Funding Borrower Snapshot Mortgage Unit Product Mix as of Q1 2025 VA Jumbo 6% 1% FHA 751 Average FICO Score 19% 22% Average Downpayment Conventional 74% $468,000 Average Loan Amount Mortgage Capture Rate 87% 89% 89%
Slide 9: Capital Position
Senior Note Maturity Schedule (in Millions) Capital Position $527 $500 $450 • $1.3 billion total liquidity • $378 million unrestricted cash • $934 million total revolving credit facility capacity, which was undrawn outside of 2025 2026 2027 2028 2029 2030 normal course letters of credit • 20.5% net
Slide 10: Capital allocation priorities
Capital allocation priorities From 2022 to 2024, Taylor Morrison generated $2.1B of operating cash flow, after investing nearly $6.0B in total land acquisition and development Maintain strong liquidity and balance sheet strength Senior debt repayment $1,117 Prudently manage senior notes outstanding
Slide 11: Land Portfolio
Homebuilding Lot Supply Land Portfolio 86,153 86,266 72,362 Owned 43% 41% • Disciplined land investment strategy focuses 47% on prime land locations in core submarkets Controlled 57% 59% • Utilizing land-lighter investment tools to 53% balance cost of capital with expected returns Q4 2023 Q4 2024 Q1
Slide 12: Multiple dimensions of diversification across our business
Multiple dimensions of diversification across our business Resort Lifestyle Entry-Level 21% 32% Move-Up 47% Based on 1Q 2025 sales West Central 35% 29% East 36% Based on 1Q 2025 closings 12
Slide 13: Online reservations are driving improved sales conversions as consumer adoption grows
Online reservations are driving improved sales conversions as consumer adoption grows 60% Reservation-to-sales conversion rate 50% 40% 30% 20% Sales contribution 10% 0% 2020 2021 2022 2023 2024 Q1 2025 13
Slide 14: Our growing Build-to-Rent business
Our growing Build-to-Rent business develops single-family rental communities designed to cater to consumers seeking an alternative to traditional multi-family rentals. ~40 build-to-rent owned & controlled communities 9 markets with Yardly operations 5 to 7 asset dispositions expected in 2025 14
Slide 15: Appendix
Appendix
Slide 16: About Taylor Morrison
About Taylor Morrison Headquartered in Scottsdale, Arizona, Taylor Morrison (NYSE:TMHC) is a leading land developer and homebuilder with operations across 12 states. We serve a wide array of homebuyers with our diverse product portfolio, including entry-level, move-up and resort lifestyle consumers.
Slide 17: Coast-to-coast footprint
Coast-to-coast footprint West • Bay Area • Las Vegas • Phoenix • Portland • Sacramento • Seattle • Southern California Central • Austin • Dallas • Denver • Houston • Indianapolis East • Atlanta • Charlotte • Jacksonville • Naples • Orlando • Raleigh • Sarasota • Tampa • Treasure Coast 21 markets in
Slide 18: What sets Taylor Morrison apart
What sets Taylor Morrison apart Diversified consumer groups and price points National, regional and local scale 1 Exposure to key demographic groups mitigates risk and 5 Enhanced scale provides operational efficiencies, cost enables a balanced spec and to-be-built business leverage and land advantag
Slide 19: Historical operating data by region
Historical operating data by region Q1 2023 Q2 2023 Q3 2023 Q4 2023 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2024 Q1 2025 Q1 2025 vs Q1 2024 Net Sales Orders East 1,079 1,047 940 902 3,968 1,295 1,160 1,140 993 4,588 1,391 7% Central 674 808 641 602 2,725 904 815 747 784 3,250 867 (4%) West 1,101 1,168
Slide 20: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Net Homebuilding Debt to Capitalization Ratios Reconciliation As of As of As of (Dollars in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Total debt $ 2,083,599 $ 2,120,483 $ 2,093,499 Plus: unamortized debt issuance cost, net 6,177 6,616 7,935 Less:
Slide 21: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures Adjusted Home Closings Gross Margin Three Months Ended March 31, (Dollars in thousands) 2025 2024 Home closings revenue, net $ 1,830,068 $ 1,636,255 Cost of home closings 1,391,360 1,243,209 Home closings gross margin $ 438,708 $ 393,046 Inventory impairment charg
Slide 22: Forward-looking statements
Forward-looking statements This presentation includes “forward-looking statements.” These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to s